The latest data of 2023 Global LED Display Market Analysis Report by TrendForce Consulting shows that although domestic LED display market demand declines significantly in 2022, overseas market demand recovers significantly. In addition, new applications such as LED virtual shooting and all-in-one PC continue to grow. Overall, the global LED display market will continue to grow to about $7 billion in 2022.



However, in the upstream chip and midstream packaging fields, the performance of the LED display industry is sluggish due to the high level of downstream inventory, the obvious decline in orders, and the obvious decline in product prices due to overcapacity.

01 Declining domestic demand, LED display chip scale down 17%

In the upstream chip market, the performance of all LED applications was sluggish in 2022, and the global LED chip market scale dropped to 2.9 billion dollars, down 20% year-on-year.



In 2022, the market demand for lighting LED chips, LED display chips and traditional backlight LED chips all declined significantly, and the only growth point was the Mini LED backlight chip market. Driven by Apple, the Mini LED backlight chip market still maintained 40% growth in 2022.



LED display chip market size fell to $570 million in 2022, down 17% year-on-year. Looking ahead to 2023, it is expected that the domestic LED display market will rebound, will also drive the scale of LED display chip growth.

Data source: TrendForce, Mar., 2023

The Mini LED display chip market also fell short of expectations. Although the full-year shipments still maintained 15% growth to more than 600,000 pieces (equivalent to 4 inches), the output volume showed negative growth from the perspective of output value due to the sharp decline in prices.



In 2022, Mini LED display chip market pattern is gradually changing. In addition to SAN 'an, Huachan and Jingdian, Qianzhao, Zhaotchi and Shilanming Chip also began to launch Mini LED chip products. In addition, in the field of red light chip, Zhaotchi, Shi Lanming core has also achieved mass production.



On the whole, LED display chip is the core industrial chain of Micro/Mini LED in the future. More and more manufacturers are entering this market, laying the foundation for the Micro/Mini LED display industry in the future. But at the same time also intensifies the degree of competition in the current market, it is expected that the price of Mini LED chips will continue to show a rapid decline.

02 Overcapacity caused by falling prices, LED display packaging market size down 16%

The midrange LED packaging market is affected by terminal demand. Overall, the global LED packaging scale in 2022 will reach $14.2 billion, down 19% year-on-year, among which the LED lighting packaging field has the most obvious decline. LED display packaging field, affected by price decline and lower downstream orders, the annual market size of $1.45 billion, down 16% year on year. Looking ahead to 2023, it is expected that domestic market demand will recover, LED display packaging market scale is expected to rebound.

Data source: TrendForce, Mar, 2023

The market concentration in the field of LED display packaging has been further improved, with the total market share of the top ten manufacturers reaching 86% before 2022. In the future, the market concentration will continue to rise with the withdrawal of more small and medium-sized enterprises. In terms of market competition, the field of LED display packaging is not only the competition between capacity, but also includes the competition between technologies.



SMD LED display packaging capacity has almost doubled in the past three years, reaching 150,000-160,000 KK/ month, while the actual market demand in 2022 is about 70,000-80,000 KK/ month, and the capacity utilization rate is about 50%. And in the field of COB LED display packaging, 4Q22 began to increase rapidly, by the end of 2022 to 15,000 square meters/month, the actual capacity of the movement rate is only about 30%. According to the manufacturer's production expansion plan, the end of 2023 COB LED display packaging capacity is expected to reach 28,000 square meters/month.



In addition, MIP technology is also gradually on the market, more and more manufacturers launched MIP products. SMD, COB, MIP and N in 1 will compete for the P1.2-P1.6 LED display market, and the prices of P1.2-P1.6 LED display products are expected to show a rapid decline.

03  As overseas demand picks up, the global LED display market will maintain positive growth in 2022

In the downstream LED display field, overseas market demand will recover significantly in 2022. In addition, new applications such as LED virtual shooting and all-in-one computer will continue to grow. Overall, the global LED display market in 2022 will still maintain positive growth.



Looking ahead to 2023, it is expected that the domestic market will recover in the second half of the year. Whether it is channel display or engineering display, the demand is expected to rebound. Overseas markets are expected to maintain demand through 2022. In the long term, TrendForce Consulting continues to be optimistic about the development of LED display market. Driven by small-pitch and Mini LED display products, the market size is expected to grow to 13 billion dollars in 2026.

Data source: TrendForce, Mar, 2023

04 Subdivision application prospects such as virtual shooting and all-in-one machine continue to be promising

In addition to the more application scenarios brought by the price decline, the future growth drivers of LED display are also the main growth drivers of virtual shooting, all-in-one and other segmsegmed applications.



Although the performance of LED display industry in 2022 is less than expected, the virtual shooting LED display market still maintains a rapid growth trend, with the global market size exceeding 400 million US dollars, a growth rate of over 50%. In the future, with more and more manufacturers entering the virtual shooting LED display market, the market size is expected to continue to maintain high growth.



LED all-in-one market, shipments continue to maintain rapid growth in 2022, with the decline of cost, LED all-in-one market gradually entered the Shang Xian market, the market demand will further increase.



In addition, with the development of photoelectric glass technology in recent years, LED transparent screen market is not only used in outdoor advertising, but also expected to enter the high-end retail store display market in the future, and the market demand is expected to continue to grow.